I need to know if in Iowa my wife and I are allowed to file separately even if we filed jointly on Federal. We both worked in the state last year. Huge Refund difference

[bradleyc77]

If we file Married-Joint, we owe around $1800 to state. If I click on the Married-Filing Separately on Combined form, the amount is $400ish.

[DanielV01]

Yes.  The reason why Iowa gives this status is to give a similar advantage to Joint Filers when both spouse's work as is available to couples filing jointly on the Federal Return.  The reason for this is that Iowa does not have a separate tax schedule (as does the Federal Return and many state returns) for couples who file jointly.  By allowing a couple to file jointly on a separate return is to maximize deductions (each gets a standard deduction instead of only one deduction for the two of you filing joint), and then you get to take advantage of the lower tax brackets on your separate income instead of being in a higher tax bracket filing together.  Married Filing Separately on a Combined return is not only legal, it is recommended for the married couple with double income (both spouses work).

[W-M-]

If I put number 3,Married filing separately in combined returns, is this ok for me and my husband then? Is my husband needs to file his Iowa return too or since I dont put number 2,married filing jointly? I am confused,I want to file jountly both federal and stat ,but when I put married separately in combined return We get more refund. Pls help. Thanks

[KrisD15]

As Daniel said, you can do either.

Since filing as "MARRIED FILING SEPARATE ON A COMBINED RETURN" results in a lower tax, file that way. 

FIRST, you would file the federal return fas "MARRIED FILING JOINTLY" 

NEXT, you would file a "MARRIED FILING SEPARATE ON A COMBINED RETURN" for your Iowa state return. 

The state return is one return, both you and your husband are filed on this one Iowa state return. 

[EDITED 02/07/2020 |04:59 PM]

[W-M-]

Thanks so much for your response! We filed using number 3 already.  (Married filing separately in combined  retruns)So We both good to go now right?  Thanks so much!

[nickcthomas]

Are you able to file married filing separately combined in Iowa, even if you are required to file married filing jointly on federal returns because you have a dependent health savings account?

[DMarkM1]

Yes.  Choose the option on your IA return that offers the best tax advantage for your situation.  You have the option.  

[3018FH]

My husband logged on to his turbo tax account and started our joint federal return. Once it was time to fill out the Iowa state return it recommended to file married filing separately on combined form.  We chose this option but upon my reviewing our returns, my name and SSN and info does not appear on one of the Iowa forms.  I cannot see a place to edit this.  Do I need to fill out my own Iowa form as married filing separately? I thought it was strange the Iowa form when going through turbo tax never asked to input my name, but I figured since it input info from the federal it pulled what it needed.  My name and SSN appear on the first couple sheets, but not on the ‘Iowa Alternative Minimum Tax-individuals’ form. 

@KrisD15 @DMarkM1 

[RobertB4444]

You probably do not need that form.  Don't worry - if you efile the Iowa return all of the forms are sent together and anything that is associated with you will be connected to your return.

@3018FH